821.51/937: Telegram

The Minister in Colombia (Caffery) to the Secretary of State


61. Department’s 26, May 14, 1 p.m. … President Olaya admits that a balanced budget was one of the first conditions laid down in the agreement of June 30, and he agreed with the bankers on a balanced budget of $51,000,000 afterwards reduced to $49,000,000 for this year. What the President holds is that he cannot revise his budget month by month in accordance with the monthly receipt of revenues; what the bankers now demand is that he reduce the budget again as the receipts for the first quarter are below their estimates. The President says that the revenues will pick up later on. There are no salary reductions involved in the new reductions demanded, but the discharge of large numbers of employees is involved. The 1930 budget reached over $59,000,000.

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